Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the following financial statements for Lake of Egypt Marina, Inc. 2018 2017 Assets Current assets: Cash and marketable securities Accounts receivable Inventory Total Fixed

image text in transcribed
image text in transcribed
Use the following financial statements for Lake of Egypt Marina, Inc. 2018 2017 Assets Current assets: Cash and marketable securities Accounts receivable Inventory Total Fixed assets: Gross plant and equipment Less: Depreciation LAKE OF EGYPT MARINA, INC. Balance Sheet as of December 31, 2018 and 2017 (in millions of dollars) 2018 2017 Liabilities and Equity Current liabilities: $ 55 $ 48 Accrued wages and taxes 45 52 Accounts payable 180 92 Notes payable $280 $192 Total Long-term debt: $265 $224 Stockholders' equity: 70 40 Preferred stock (2 million shares) Common stock and paid-in surplus $195 $184 (24 million shares) 25 24 Retained earnings $220 $208 Total $500 $400 Total liabilities and equity $ 40 45 50 $135 $ 51 $36 44 52 $132 $138 $ 2 $ 2 Net plant and equipment Other long-term assets Total Total assets 24 288 $314 $500 24 104 $130 $400 2017 $ 5 400 120 280 16 $ LAKE OF EGYPT MARINA, INC. Income Statement for Years Ending December 31, 2018 and 2017 (in millions of dollars) 2018 Net sales (all credit) $ 680 Less: Cost of goods sold 216 Gross profits $ 384 Less: Other operating expenses 38 Earnings before Interest, taxes, depreciation, and amortization (EBITDA) 354 Less: Depreciation 3e Earnings before interest and taxes (EBIT) 5 324 Less! Interest 24 Earnings before taxes (EBT) $ 300 Less: Taxes 90 Net income $ 210 Less: Preferred stock dividends $ 2 Net income available to common stockholders $ 208 Less: Common stock dividends 24 Addition to retained earnings $ 184 Per common) share data: Earnings per share (EPS) $ 8.667 Dividends per share (DPS) $ 1.000 Book value per share (BVPS) $13.00 Market value (price) per share (VPS) $15.300 264 24 240 20 220 66 $ $ 15-4 $ $ 2 152 24 128 $ $ 6.333 $ 1.000 $5.333 $13.100 Calculate the following ratios for Lake of Egypt Marina, Inc. as of year-end 2018. (Use sales when computing the inventory turnover and use total equity when computing the equity multiplier. Round your answers to 2 decimal places. Use 365 days a year.) LAKE OF EGYPT MARINA, INC. a Current ratio b. Quick ratio C Cash ratio d. Inventory turnover e Days' sales in inventory f Average collection period 9. Average payment period h Fixed asset turnover Sales to working capital Total asset turnover k Capital intensity 1 Debt ratio m. Debt-to-equity n. Equity multiplier 0 Times interest earned P Cash coverage 9 Profit margin Gross profit margin 5 Operating profit margin 1 Basic earnings power ROA V ROE w Dividend payout Market to book ratio Y PE ratio times times times times days days days times times times times % times times times times % % % % % % % times times

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Decision Modeling With Spreadsheets

Authors: Nagraj Balakrishnan, Barry Render, Jr. Ralph M. Stair

3rd Edition

136115837, 978-0136115830

Students also viewed these Finance questions

Question

Who do you consider family?

Answered: 1 week ago